7% or 12%? Manitoba sales tax, sorted.
Nearly every new Manitoba business gets this wrong at least once. Here’s the whole thing in about four minutes.
You charge 12%. But it isn’t one tax — it’s two, run by two different governments, with two sets of rules. Treating them as one thing is the most common bookkeeping mistake we see in Manitoba, and it quietly costs money in both directions.
One more detail people miss: RST is calculated before GST, not on top of it. On a $100 sale that’s $5 GST and $7 RST. Never $7.35. You don’t charge tax on tax.
The $30,000 threshold — and who it doesn’t cover
Under $30,000 in annual taxable sales, you generally don’t register or collect RST. You pay it on your own purchases and build it into your prices. Your invoice must say RST is included — and must not show it as a separate line.
You can’t use the small-business exemption if you:
- Buy from out-of-province suppliers who don’t charge Manitoba RST
- Sell tobacco or liquor
- Are an out-of-province business reselling goods you haven’t paid Manitoba RST on
That first one catches a lot of retailers and online sellers who assume they’re safely under the line. Source stock from Ontario or the US, and the exemption is off the table no matter what your revenue is.
Cross $30,000 and you get one month to register and start collecting. It’s free, at manitoba.ca/TAXcess.
The rule almost nobody knows
Bring goods into Manitoba from outside the province worth $800 or more, in two or more months of the same calendar year, and you must register with Manitoba Finance and self-assess RST on them.
It applies whether or not you’re making taxable sales. This is the obligation we most often find has been missed — sometimes for years.
How often you file
Everything is due by 4:30 p.m. on the 20th of the month after your period ends. Monthly filers must use TAXcess — paper isn’t an option.
And note your RST schedule has nothing to do with your GST schedule — the CRA sets that separately. Plenty of businesses end up filing one quarterly and the other monthly. Both deadlines are yours to track.
Keep everything for seven years
Manitoba Finance requires records for the current fiscal year plus the six before it. General ledgers, indefinitely. That’s longer than most owners expect — and “I had it, but we changed accounting systems” isn’t an answer an auditor accepts.
- GST 5%, federal, recoverable
- RST 7%, provincial, not recoverable
- RST is calculated before GST — no tax on tax
- The $30,000 exemption has real exclusions
- $800+ from out of province, twice a year, means registering
- Always file nil returns
- Keep records seven years
If you suspect you’ve been treating RST as recoverable, or you’re not sure whether the threshold covers you, it’s cheaper to check now than to unpick it later.
Book a free consultation →General information about Manitoba Retail Sales Tax, not advice for your situation. Rules change and exceptions apply. For the authoritative wording see The Retail Sales Tax Act and Manitoba Finance’s Information Bulletin RST 004, or call Manitoba Finance at 204-945-5603. Current as of August 2026.
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